Swiss plan second Summerlin resort

David Strow

Wednesday, June 14, 2000 | 11:35 a.m.

With optimism rising over the Regent Las Vegas hotel-casino, the resort's majority owner says it's preparing to build its second resort in Summerlin.

Swiss Casinos of America has acquired a 55-acre land parcel at Town Center Drive and the Las Vegas Beltway for the proposed casino from Howard Hughes Corp. Swiss Casinos had the right of first refusal to acquire the parcel.

John Tipton, president of Swiss Casinos of America, said Tuesday that construction on a 900-room, locals-oriented resort will likely begin in 2002, with completion coming about two years later.

The cost of the project would likely be "around the same average cost" as the Regent ($300 million), Tipton said.

"We think Las Vegas is quite an exceptional market, dynamic and vibrant," Tipton said. "We're hopeful the community likes what we've built (at the Regent) ... and that another project in that area would be successful."

The most likely method of financing the project would be a public bond offering, Tipton said.

"We'd probably go back to the public markets, and see what those rates would be as opposed to doing it (financing the project) ourselves."

The Swiss Casinos property, obtained in March, would be less than 2 miles west of a Spring Valley hotel-casino proposed by Triple Five Nevada Development Corp. and Boyd Gaming Corp.

That property's future rests in the hands of a state judge, however, after the Nevada Gaming Policy Committee rejected an application by the companies to rezone the parcel, saying it would have a negative impact on the surrounding community.

The proposed Boyd casino would be at the center of a 115-acre shopping park at Flamingo Road and the beltway. In addition, Station Casinos Inc. owns a 51-acre gaming-zoned site at Durango Drive at the beltway, about 5 miles from the Swiss Casinos land parcel.

Difficulties won't arise with the Swiss Casinos project because the land has already been approved for gaming use under Nevada Senate Bill 208, said Tom Warden, spokesman for Howard Hughes.

"We disclose to everyone who ever bought a house (in Summerlin) where the (gaming) enterprise zones are," Warden said. "That allows people to make a better, informed decision."

Summerlin has four undeveloped parcels remaining that could be used for gaming ventures. Swiss Casinos holds the right of first refusal on all remaining parcels, Warden said.

Unlike the Regent, which focuses on out-of-town visitors as well as locals, the new casino would be focused more on the local market, Tipton said.

"It would be an upscale property, probably more of a four-star than a five-star, but still obviously a nice type of hotel facility and entertainment complex," Tipton said. "There's really nothing in that area for the locals. That area is growing. That's the piece of Summerlin Howard Hughes is developing next.

"There are other entertainment things that would really work well for the local community."

Tipton said he couldn't address what entertainment options would be included, because plans for the resort have yet to be finalized.

For Swiss Casinos, such a venture could be viewed as a gamble, given the initial struggles experienced by the Regent after its opening in July 1999. Tipton said that was the result of the incomplete opening of the resort -- the final rooms in the 541-room property didn't open until late April.

Swiss Casinos' original plans for the Regent called for its complete opening by April 1999. Tipton vowed that a partial opening would not be repeated with the second property.

"That hurt a lot," Tipton said. "With all of the rooms open now, we're seeing occupancies and (average daily room rates) at where we thought they'd be about a year ago. That's why the Swiss (parent company) has been so positive and willing to support (the Regent) economically.

"The biggest struggle has been on the construction side. We wouldn't open a property until it's absolutely complete this time."